Product Code Database
Cobasys LLC is an American automotive technology corporation. It supplies nickel metal hydride (NiMH) batteries, battery control systems, and packaged solutions for automotive applications, uninterruptible power supplies, telecommunications applications, and distributed power generation. Markets Served Cobasys. Retrieved on 2007-08-06. For 8 years ending in 2009, Cobasys was a 50-50 joint venture between California-based Chevron Corporation and Michigan-based Energy Conversion Devices, Inc. (also called ECD Ovonics, ECD, or Ovonics) Cobabsys: Investors (Corporate website). Cobasys. Retrieved on 2007-08-07.Roberson, J. Supplier Cobasys exploring more hybrid batteries. Detroit Free Press, 2007-03-14. Retrieved on 2007-08-06. The intermediary hierarchy of ownership was that Cobasys LLC was owned by Chevron's subsidiary Chevron Technology Ventures LLC, and ECD Ovonics' subsidiary Ovonic Battery Company. Ovonic Materials Division — NiMH Battery JV Overview ECD Ovonics. Retrieved on 2007-08-08. Cobasys spent $180 million in funding from Chevron Technology Ventures, and the two owners were unable to agree on further funding of the company. After arbitration between the owners had stalled, a buyer was found.
On July 14, 2009, the sale of Cobasys to SB LiMotive, an electric vehicle battery joint venture between Samsung and Robert Bosch GmbH, was announced. The joint venture ended in 2012, with Bosch taking full control of Cobasys.
The "invented NiMH variation" of Mr. Ovshinsky consisted in special alloys with disordered alloy structure and specific multicomponent alloy compositions. This variation made possible to increase the battery performance, i.e. the energy density, the cycle life and other characteristics.
In the early 1980s OBC produced Ovonic NiMH batteries for the consumer market. Until that time, Nickel Cadmium (NiCad) batteries dominated the consumer rechargeable battery market, but NiMH batteries were safer, and stored more energy in an equivalent size. It also began work with Hyundai Motor Company and an unnamed Japanese automaker on batteries for electric vehicles (EVs). In 1992, OCB was awarded a contract by the United States Advanced Battery Consortium (USABC), a consortium of US automakers, to develop EV batteries, and in 1993, their first EV NiMH battery pack was used in the Chrysler TE van, which previously used Li-alloy/FeS batteries.Chilenskas, A. A., and G. Barlow. Li/FeS battery design for an electric van. (Abstract Only). Society of Automotive Engineers international congress and exposition; 27 Feb - 3 Mar 1989; Detroit, MI (USA); DOE Project; Technical Paper 890785. 1989. Retrieved on 2007-08-06.
This period was during the development of hybrid and electric vehicles by several automotive manufacturers Honda EV Plus: The Dream of an Electric Vehicle(1988). Honda. Retrieved on 2007-08-07. trying to comply with California's Zero emission (ZEV) Program, which required 2% of new vehicles sold or leased in the state to be ZEVs by the 1998 model year, and 10% by the 2003 model year. Status Report on the California Air Resource Board's Zero Emission Vehicle Program Air Resource Board, California Environmental Protection Agency, 2007-04-20. Retrieved on 2007-08-07. NiMH batteries were used in small production runs of EVs from Toyota, Honda, DaimlerChrysler, and Ford in 1997, and GM in 1999.Anderman, Menahem, Fritz R. Kalhammer, Donald MacArthur, The Year 2000 Battery Technology Advisory Panel. o3.arb.ca.gov/msprog/zevprog/2000review/btapreport.doc State of California Air Resources Board, 2000-06-22. Retrieved on 2007-08-07. In 1996, California pushed back its ZEV compliance requirement from 1998 to 2003, and required the sale of just 3,750 ZEVs between 1998 and 2001. Zero Emission Vehicle Study, January 2000 Bureau of Air Quality, Maine Department of Environmental Protection, January, 2000. Retrieved on 2007-08-08. Fact Sheet: 2003 Zero Emission Vehicle Program Changes State of California Air Resources Board, 2004-03-18. Retrieved on 2007-08-08.
In 2004 this joint venture was renamed Cobasys LLC. We have changed our name to COBASYS . (Press release). Cobabsys, 2004-03-15. Retrieved on 2007-08-08.
In addition to holding a 50% share of Cobasys, Chevron holds a 19.99% interest in ECD Ovonics. ECD Ovonics Definitive Proxy Statement of January 15, 2003 Chevron maintains veto power over any sale or licensing of Cobasys' NiMH technology. ECD Ovonics Amended General Statement of Beneficial Ownership of December 2, 2004 In addition, Chevron maintains the right to seize all of Cobasys' intellectual property rights in the event that ECD Ovonics does not fulfill its contractual obligations. On September 10, 2007, Chevron filed a legal claim that ECD Ovonics has not fulfilled its obligations. ECD Ovonics disputes this claim. ECD Ovonics 10-Q Quarterly Report for the period ending September 30, 2007
Two other 50/50 joint ventures between Texaco and EVD Ovonics were created shortly before and after Texaco's acquisition of GM's shares in what became Cobasys. One focused on regenerative fuel cell technology, the other on metal hydride hydrogen technology.
PEVE supplied higher-capacity (28–95 Ah) NiMH batteries for use in Toyota, Honda, and Ford battery electric vehicles (BEVs) that began production in 1997. Panasonic EV Energy Co., Ltd.: News (Corporate website). Panasonic EV Energy Co., Ltd. Retrieved on 2007-08-08. PEVE's lower capacity batteries powered the hybrid electric vehicle (HEV) Toyota Prius, which was introduced in Japan in 1997, and sold 18,000 units in its first year of production, Timeline: Life & Death of the Electric Car PBS NOW, 2006-06-09. Retrieved on 2007-08-08. as well as the first Honda Insight and, with Sanyo Electric Co, first generation Civic hybrid models. BEV production by major automakers ceased in the early 2000s, with most leased BEV vehicles crushed by their manufacturers, and replacement batteries unavailable for remaining vehicles.
A 2001 patent infringement lawsuit brought by ECD Ovonics and Ovonic Battery Company, Inc. against Matsushita, Toyota, and PEVE was settled in July 2004. Settlement terms called for cross-licensing between parties of current and future NiMH-related patents filed through December 31, 2014. The terms prevented Matushita, Toyota, and PEVE from selling certain NiMH batteries for transportation applications in North America until the second half of 2007, and commercial quantities of certain NiMH batteries in North America until the second half of 2010. Additionally, Ovonic Battery Co. and ECD Ovonics received a $10 million patent license fee, Cobasys received a $20 million patent license fee, $16 million of which was earmarked to reimburse legal expenses, and Cobasys would receive royalties on certain batteries sold by Matushita/PEVE in North America. US SEC Form 8-K, Energy Conversion Devices, Inc., July 7, 2004 . (SEC filing). ECD Ovonics, 2004-07-07. Retrieved on 2007-08-08.
Licensing terms were expanded in 2005, with PEVE granted further license to sell NiMH batteries for certain transportation applications in North America, in exchange for royalties paid to Cobasys through 2014. Cobasys and Panasonic Expand Relationship for NiMH Batteries (Press release). Cobasys, 2005-07-06. Retrieved on 2007-08-08.
Cobasys and A123Systems announced a partnership in 2007 to develop, manufacture, sell and service lithium-ion batteries for automotive applications. A123Systems will provide their proprietary nanophosphate lithium ion technology and manufacture the batteries, while Cobasys will act as the tier one supplier to the automotive industry, providing extensive development and integration services. Cobasys and A123Systems Announce Partnership to Develop Lithium Ion Hybrid Electric Vehicle Battery Systems (Press release). Cobasys, 2007-01-03. Retrieved on 2007-08-08.
Cobasys was contracted to provide NiMH battery systems for the GM's Saturn Vue Green Line SUV, GM's Saturn Aura Green Line sedan, and GM's Chevrolet Malibu Hybrid Sedan. Cobasys Confirms Production Contract for 2008 Chevrolet Malibu Hybrid Sedan Cobasys, 2007-03-13. Retrieved on 2007-08-08. In 2009, GM discontinued the Saturn brand, ending the contract.
In March, 2007, Cobasys announced that they were exploring strategic alternatives to growth, engaging the services of financial advisors from UBS Investment Bank and Goldman, Sachs & Co. Cobasys to Explore Alternatives to Support Growth Strategy Cobasys, 2007-03-14. Retrieved on 2007-08-08.
On July 14, 2009, the sale of Cobasys to SB LiMotive, an electric vehicle battery joint venture between Samsung and Robert Bosch GmbH, was announced. This joint venture was terminated in 2012, with Cobasys being folded into Bosch, with joint access of the partners to the 3000 or so patents held by it.
On February 14, 2012, the former Energy Conversion Devices Inc. operating subsidiary "Ovonic Battery Company" was acquired by BASF Corporation of Germany.
On October 10, 2000, Texaco announced the purchase of GM's share in GM Ovonics, and Chevron announced its acquisition of Texaco six days later. In 2003, Texaco Ovonics Battery Systems was restructured into Cobasys, a 50/50 joint venture between Chevron and Energy Conversion Devices (ECD) Ovonics.Roberson, J. (March 14, 2007) "Supplier Cobasys exploring more hybrid batteries" Detroit Free Press Chevron's influence over Cobasys extended beyond a strict 50/50 joint venture, holding a 19.99% interest in ECD Ovonics. ECD Ovonics Definitive Proxy Statement of January 15, 2003 In addition, Chevron maintained the right to seize all of Cobasys' intellectual property rights in the event that ECD Ovonics did not fulfill its contractual obligations. On September 10, 2007, Chevron filed a legal claim that ECD Ovonics had not fulfilled its obligations. ECD Ovonics disputed this claim. ECD Ovonics 10-Q Quarterly Report for the period ending September 30, 2007 Since that time, the arbitration hearings were repeatedly suspended while the parties negotiated with an unknown prospective buyer. No agreement was reached with the potential buyer. ECD Ovonics 10-Q Quarterly Report for the period ending March 31, 2008 Cobasys's patents relating to NiMH batteries expired in 2015.
In her book, Plug-in Hybrids: The Cars that Will Recharge America, published in February 2007, Sherry Boschert argues that large-format NiMH batteries are commercially viable but that Cobasys refuses to sell or license them to small companies or individuals. Boschert concludes that "it's possible that Cobasys (Chevron) is squelching all access to large NiMH batteries through its control of patent licenses in order to remove a competitor to gasoline. Or it's possible that Cobasys simply wants the market for itself and is waiting for a major automaker to start producing plug-in hybrids or electric vehicles."
Plug-in Hybrids: The Cars that Will Recharge America (Gabriola Island, BC: New Society Publishers)
In an interview with The Economist, Stan Ovshinsky stated, "I think we at ECD we made a mistake of having a joint venture with an oil company, frankly speaking. And I think it’s not a good idea to go into business with somebody whose strategies would put you out of business, rather than building the business." In a later interview, however, when asked, "So it's your opinion that Cobasys is preventing other people from making it for that reason?", he responded "Cobasys is not preventing anybody. Cobasys just needs an infusion of cash.".Archived at Ghostarchive and the Wayback Machine: Cobasys CEO Tom Neslage refuted the financial criticisms, saying that Cobasys had been continuously funded since its 2001 founding, and Chevron's funding had totaled more than $350 million.
In October 2007, International Acquisitions Services, Inc. and Innovative Transportation Systems AG filed suit against Cobasys and its parents for refusing to fill a large, previously agreed-upon order for large-format NiMH batteries to be used in the electric Innovan. ECD Ovonics 10-Q Quarterly Report for the period ending March 31, 2008
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